Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Economics question: indifference curve?

  1. Oct 10, 2012 #1


    User Avatar

    I know if you have two bads the slope is negative and is curved, and the closer to 0 the better.

    But what if you have two bads where one is worse? I.e. good a and b are both bads, but you want 5 of good b for every 1 of good a?
  2. jcsd
  3. Oct 10, 2012 #2
    The qualitative behavior of the curve does not change. You are looking at points of equal total utility so it doesn't matter if 1A=2B or 7.5A=137B, the behavior is the same. Increasing one must decrease the other in order to maintain total utility (the curve is decreasing) and there is always diminishing marginal utility (the curve is not linear).
Know someone interested in this topic? Share this thread via Reddit, Google+, Twitter, or Facebook

Similar Threads - Economics question indifference Date
Economics: Elasticity Differential Equation Question Aug 23, 2013
Question for economics course Nov 1, 2009
Economic question based on billionaire's Mar 26, 2009
News A question on the economics situation at the US. Oct 3, 2008